profitepaper pakistantoday 08th april, 2012

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US paranoia shifts from Tehran to Pyongyang Page 02

profit.com.pk

Sunday, 08 April, 2012

President crosses out ‘economic consensus speech’ from his to-do list for 2012 Mentions politicisation of economic policies among the list of things our nation can not afford g Meets businessmen and entrepreneurs to sort out differences g Claims his govt ‘inherited’ the economic predicament, to no one’s surprise

CoMMent

The RPP

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LAHORE APP

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ReSIDeNT Asif Ali Zardari on Saturday called for broad-based political consensus on national economic policies, owned by the business community, for their continuity regardless of which government was in power. he said that after having achieved consensus on political reforms it was time to work towards consensus on economic reforms as “we cannot afford politicization of economic policies of the country”. The President said this during a meeting with the businessmen and entrepreneurs belonging to various sectors, including textile, banking, engineering, chemical, fertilizers, cement, tractors, construction and others at the Governor house here. Briefing about the meeting, Spokesperson to the President Senator Farhatullah Babar said that the President commended the business community for the persistent good performance and achieving record export performance despite the various challenges on internal and external fronts, including the problems of militancy and law and order, power shortages, global economic slowdown and the reluctance of foreign investors to visit Pakistan.

The President, while commenting on the hard economic situation and difficult conditions inherited by the government, said that the country was

facing numerous challenges from both within and outside the borders. he said that Pakistan was a wheat exporting country but the lack of continuity in economic policies put the country in difficult conditions resulting in huge energy shortage besides creating the issue of circular debt for the present government. The President said that the present government has consulted and will continue to take on board the business community of the country on all major economic decisions, such as the federal budget and trade policy matters as the government believes that the input of business community is very important in devising policy that is business-friendly as well as productive. The President said the economic policies of government are mainly aimed at job creation for youth, improving investment climate and resolving energy issues. While commenting on the current power and energy crises in the country, he said that the government was fully alive to the issue and the resolution of the energy crisis was certainly on a high priority for it. he said that the government was busy in undertaking measures, both short and long term, for easing the energy crises which include the injection of more hydro power into the system through construction of small, medium and large dams in various parts of the country, wind, solar and biomass energy projects, besides the import of natural gas from the neighbouring countries. he

Being PIA MD is a thankless job… g

With the small matter of revamping financial loopholes in the airlines already on the table, new MD is set to face challenges abroad as well LAHORE

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STAFF REPORT

he new Managing Director of Pakistan International Airlines (PIA) Rao Qamar Suleman face challenges of not only revamping the huge human resource and financial loopholes of the airline but would also have to seriously and

said that multinationals and Pakistani joint ventures were now undertaking projects to produce electricity at Thar and the government was also expecting construction of 11 wind power projects to begin shortly. The Spokesperson said that the President in reply to a question regarding loadshedding, advised the government to consider exemption of express feeders of industries in Lahore region from loadshedding. he directed the Water and Power Minister, Syed Naveed Qamar, who was also present in the meeting, to take steps in this regard. The President, while highlighting various focused areas of the government’s economic policies, said that the government had emphasized regional trade and for this purposes currency swap agreements had been negotiated with a number of countries, including Turkey, Sri Lanka, China, Russia and Jordan. The President said that the currency swap agreements negotiated with various countries would provide huge incentives to the business community to actively explore and enhance business linkages with these countries as the traders would be able to trade in local currencies obviating the need to look for dollars or other foreign currencies to do business.

The Spokesperson said commenting on the government’s policy regarding foreign remittances, the President said that the government have devised incentive packages and policies for expatriate Pakistanis to attract more for-

effectively check the flaws in flight operations which previous management did not even consider worthy enough.

Latest in series of setbacks at foreign destination is the most lucrative station Jeddah, the reason nothing new to airline, flights operating delayed. earlier, the PIA was reprimanded by the British aviation authorities over delays and lax safety. And this time, the national airline has been warned by the Saudi civil aviation authorities to ensure its scheduled landing time for the summer flights. “Or be ready to shift night landings to the day time,” which will result in inconvenience to the PIA passengers.

The new MD PIA sources said, will have to take stern action by appointing efficient staff at strategic positions in all departments to send message to all ranks that merit will be the only criteria, otherwise the sloppy flight operation will get further sluggish as currently the airline is plagued with unconcerned staff.

Sources informed that the Saudis have pointed out that frequent arrival and departure delays by the PIA flights quite

eign remittances. The incentivization policies resulted in robust growth of remittances that were 6 billion dollars in 2007 have significantly increased to nearly 12 billion dollars now.

The President invited the business community to participate in the Public Private Partnership projects in infrastructure sector on Build Operate Own (BOO) basis by raising equity through stock exchange. The President assured the business community that the present government will continue to work for the welfare of Pakistan’s business interests and creating business friendly environment in the country.

The President urged the business community to take ownership of policies of the government unlike the past when the PPP’s policy to generate 40,000 megawatts of electricity through Independent Power Producers (IPPs) was put in cold storage, which led to the present power shortages in the country.

Counting the government’s measures for improving the country’s economy, he said that stock exchange is trading at 12000 points and the credit rating has improved internationally. he said that revenue collection upto March 2012 stood at Rs. 1270 billion as compared to Rs. 1020 billion during the corresponding period of last year reflecting 25% increase. he said the exports continued to register an upward trend despite the high base of last year exports of 30% increase that touched record figure of dollars 25.5 billions.

much disturb the schedules of other airlines at the busy airports of Jeddah and Riyadh.

“Officials of PIA in Saudi Arabia have passed on the reservations of the Saudi aviation authorities to the PIA headquarters with a request to give an undertaking that the summer flights would adhere to the scheduled timings,” said the source. Since, they are closely monitoring all the PIA flights there, any slippage in this regard would cost PIA dearly, sources added. earlier the Jeddah King AbdulAziz Airport Authority had shifted PIA flight operations to hajj terminal from normal terminal for delays and carrying mostly Umrah passengers on regular flights.

Sources informed that since Jan 1st 2012 till the end of March almost 400 flights from different cities of Pakistan to/from Jeddah got delayed out of more than only 500 flights. During the same period, around 50 flights to/from Medina also got delayed out of above 60 flights.

On the other hand, concerned PIA officials have warned the management that the shift of flight landings in Saudi

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T’S just past the too-soon point to comment on the RPP verdict. Granted, the project had weight, at least in theory, both when Gen Musharraf’s team okayed it, and later, when the present dispensation started doling out invites. And true, the court’s precedent sets a landmark. There will be better checks and balances next time. In fact, the entire risk management exercise might undergo thorough overhaul. Yet there is an even more important angle to the story. It is even more significant to see how justice is now meted out to those at the centre of what must qualify as a grave crime against the country – exploiting national energy shortage to enrich a corrupt, powerful few.

And the novelty aspect of the ruling notwithstanding, initial signs are not very pleasant. It does not exactly build confidence when the only person crying hoarse before anybody who’d listen to cease and desist – the finance minister of this government’s first year – is put on the eCL pending investigation. even more important, though, is charting a way out of the present quagmire. energy shortage is at the centre of all things preventing a slow, sustainable pullout of stagflation. It does not let industry function. It has slowed down manufacturing. It has even compromised 40 per cent export output in the outgoing fiscal. In households, consistent power outages have enraged the public enough to take to the streets, with rioting threatening assuming disturbing momentum.

In such times, merely identifying all that is wrong, though essential, is an incomplete exercise. Now that the court has indulged in the matter, it must extend its writ to the maximum, exerting whatever pressure at its disposal to get concerned quarters to chalk out the most cost effective way forward. Special care must be taken to weed out whatever irregularities have already entered the post-verdict narrative. And removing the good former finance minister’s name for the list is a good point to start.

Arabia from night to day time would upset the schedule of almost all other PIA flights. Therefore, it was advised to strictly follow the schedules, said the sources.

The Director Marketing PIA in one of his communications with the management said that “the concerns shown by General Authority of Civil Aviation in Saudi Arabia and KAIA need to be taken seriously. It is requested that we must maintain punctuality to avoid any untoward situation in PK’s operations.

All efforts be made to maintain all departures/arrivals as per schedule filed with the Regulatory Authorities.” he further said that “It may please be noted that the Saudis are very rigid and if once decided they can ask PK to shift its operation in day times. Such concerns have time and again been highlighted by GACA/KAIA in certain meetings with the local PK authorities.”

“Shifting of operations to day times will not only hamper other PK network operation but it will also give

a bad name to the national flag carrier. Such a bad impression also affects market and definitely passengers will also be disturbed and divert to other carriers,” he added.

It may be mentioned here that airports in Saudi Arabia are the ones most lucrative for PIA’s business, but the national airlines’ indifferent attitude towards these stations will land PIA in trouble.

The mentioning of earlier warning issued to PIA by the authorities of King Abdulaziz International Airport Jeddah would not be out of place here as they refused to operate the PIA flights on the conditions of PIA. It was reported that the delayed operations of 32 flights out of 40 flights scheduled to Jeddah in the just 20 days of February (from 1stto 20th) by PIA resulted in taking the KAIA authorities stern action against the incessant inefficiency of the PIA authorities. It is pertinent to mention that PIA’s flights from from Karachi, Lahore, Islamabad, and Peshawar stations to Jeddah usually got delayed on daily basis.

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Sunday, 08 April, 2012

02 news Work in tandem, will you please? g

eAC stresses joint centre-province strategy for revenue mobilisation ISLAMABAD

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AMER SIAL

committee consisting of experts, the economic Advisory Council (eAC) on Saturday advised the government to engage with the provincial governments to discuss revenue mobilization efforts at the provincial level to increase the annual revenue generation.

The advice was give at the meeting of eAC chaired by Finance Minister Dr. Abdul hafeez and attended by Convener eAC Dr. hafiz A.Pasha, Deputy Chairman, Planning Commission Shahnaz Wazir Ali, Dr. Shamshad Akhtar, Nasim Beg, Bashir Ali Mohommad, Dr. Aisha Ghaus Pasha, Dr. Ijaz Nabi, Ali habib, Ali Jameel, Arshad Zuberi, Farid Rehman and Shoaib Sultan Khan.

The advice has gained importance as all the federal government efforts to increase the tax to GDP ratio from below 9 percent to 12 percent have failed during the last four years in office. The reason being the low tax collection from services, agriculture and real estate that fall under provincial jurisdiction. The powerful lobby of feudal has successfully thwarted any attempt to tax the agriculture income. Without including new areas in the tax net the government is not likely

to come out of low revenue collection circles leading to debt crisis.

The meeting also discussed proposals for Budget 2012-13 and assist in the formulation of economic policies for the next year. economic Affairs Division gave a presentation on ‘Disbursement of Foreign Assistance 2011-12’.

Operational budgetary proposals were presented by respective sub-committees of eAC in areas of industrial and agriculture sectors including textile policy, capital markets and balance of payments. The sub-committees on social sector and fiscal coordination gave preliminary inputs with detailed presentation to be given in the next meeting of eAC. The eAC asked Deputy Chairman Planning Commission to present a strategy on tariff rationalization, FBR to present a strategic perspective on tax reforms, Chairman SeCP to present a strategy for development of capital markets and Ijaz Nabi to give a strategic view of Indo-Pak trade in the next meeting. It was decided that along all other subcommittees will present their more detailed proposals for the Budget 2012-13 in the next meeting of the eAC after engagement with the key stakeholders. Addressing a national enforcement dialogue on tax evasion on Friday, the

Finance Minister said the culture of tax evasion was a serious issue and the government is taking concrete steps to control this menace. he said that tax evasion is causing revenue shortfall in the country and thus hampering national development and public welfare projects and dependence on foreign loans is increasing due to this undesirable practice. he highlighted the weak regulatory mechanism is one of the reasons for tax evasion as it encourages tax evaders resulting in ever increasing number of people and organizations starting getting involved in tax evasion.

Speaking on the occasion, Chairman FBR Mumtaz haider Rizvi rejected the impression of non-existence of effective tax mechanism in the country. he said that the issue of tax evasion in the cigarette industry is of very serious nature and is caused by non-compliance to the legal framework. he said that FBR has established a dedicated cell in Peshawar which is doing all efforts to check production and distribution of illegal cigarettes as well as entry of smuggled cigarettes into the country which is evident from recent successful raids in KPK and Sindh. he said that introduction of special audit system to check suspicious tax evasion has helped a lot in countering tax evasion.

Banking sector spoofs a James Bond film Banks defrauded by Khurram Rasool to drag FiA in sC for inaction against ‘influential’ ex-adviser to PM

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KARACHI STAFF REPORT

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he banks defrauded allegedly by Khurram Rasool, former advisor to Prime Minister Yousuf Raza Gilani, tend to mobilize next week the Supreme Court against the Federal Investigation Agency (FIA) for the spy agency’s alleged inaction against the influential accused, it emerged on Saturday.

According to sources, a couple of national and international banks had approached the FIA in November last year for initiating a probe against Khurram who had obtained loan from a local bank against the properties he had already mortgaged with a foreign bank for a loan he had defaulted on.

The FIA was informed that the ex-advisor to PM had defaulted on

a Rs 10 million loan extended to his self-owned concern against mortgage of his two valuable properties in Rawalpindi. After Khurram had defaulted on his loan the bank obtained a decree for recovery of its outstanding amount. During the recovery process it was revealed that the mortgaged properties were already pledged to a foreign bank to obtain a loan facility.

The mortgaged properties include two petrol pumps built on a piece of land measuring 11 kanals in total and situated, respectively, on G.T Road and Iqbal Town of Rawalpindi. The local bank had accessed the FIA last year, on November 21, by filing a complaint against Khurram praying that the accused be taken to task in accordance with law of the land. however, the sources claimed that FIA’s investigators, working on the case, were

“hesitant” to take Khurram to the books, thus making the exploited banks having opted to go in litigation against higher ups in the spy agency. “The Investigating Officer has (allegedly) not taken any action against the accused till date despite repeated requests from both the banks and no case had so far been registered against the accused,” said the sources.

They said the banks had prepared a petition through which the apex court would be prayed to direct the Director General FIA to register a case against Khurram for committing fraud with the banks.

The banks would petition that the former advisor to the premier with a “prior design, ulterior motives and criminal intent” had mortgaged the properties with the local bank with an intention of committing fraud. “The fact of the property being mortgaged with the foreign bank was intentionally not disclosed to the local bank and succeeded in obtaining a finance facility,” reads the banks’ petition.

ADB’s AsiAn AssistAnCe

Drainage services to over 40m farmers by 2020: ADB ISLAMABAD ONLINE

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O assist Asian countries drainage services to over 40 million farmers by 2020, the Asian Development Bank (ADB) has financed more than 200 irrigation projects, with investments totaling US$6.6 billion, and has some US$1.1 billion of irrigation projects pipelined.

In line with its Water Operational Plan, ADB is organizing a four-day Asian Irrigation Forum staring from April 11 to review the region’s performance in irrigation and irrigated agriculture, explore the future of irrigation and drainage in

rural development, and identify needs and opportunities for strengthened partnerships to deliver more productive irrigation services throughout the region.

With a global population of 7 billion, Asian irrigation is now at a crossroads. Increasing populations, changing diets, growing cities, and expanding energy and industrial production each demands a greater share of available water resources.

With increasing concerns about water scarcity and food security, agriculture as the largest user of water must find ways to increase the productivity of irrigation to produce the food, fiber and fuel needed by the growing population.

Improving the productivity of irrigated agriculture is expected to be the foundation for securing affordable food for the population of Asia-Pacific. Irrigated agriculture has been the backbone of rural development in Asia. About 70 per cent of the world’s irrigated area is in Asia. The Comprehensive Assessment of Water Management in Agriculture, released by the International Water Management Institute in 2007, noted that “the challenge for irrigated agriculture in this century is to improve equity, reduce environmental damage, increase ecosystem services, and enhance water and land productivity in existing and new irrigated systems.”

US paranoia shifts from Tehran to Pyongyang g

With the Kwangmyongsong-3 satellite all set to be launched, Washington and its chums are making sceptical noises KUNWAR KHULDUNE SHAHID

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S Iranian sanctions are beginning to bite back, as everyone associated with the oil game had prognosticated, the US is now eying to play dear godfather in the Korean Peninsula. It’s a quagmire that the US is throwing the entire global economy through the Iran episode, as the banks that now face difficulty dealing with Iran would vouch for. And now another episode on the other flank of the Asian realm is ensuring that the region becomes more volatile day by day.

After China categorically stated its intention of a ‘strong retaliation’ against any strike on Iran, Pyongyang’s unyielding stance on their upcoming satellite launch – that has faced a lot of unnecessary hullabaloo from the US and its chums – is threatening to throw a very nasty cat among some extremely vulnerable pigeons. With the launch scheduled for April 12 through to April 16 the Kwangmyongsong-3 satellite is all set to nourish the paranoia of president Barack Obama and that of his good friend Lee Myung-bak, South Korean president.

Just like Iran’s uranium enrichment programme is apparently a shoo-in to destroy the whole mighty universe by metamorphosing into a nuclear bomb making spree, North Korea’s missile launch is also ostensibly being designed as a pretext to expand their very own programme of nuclear terrorism.

If there ever is an SI unit designed to measure the degree of paranoia – and I think the world needs one – that a particular entity can muster inside their existence, the level being flaunted by the US and its good friends might just be used to define the upper extreme of that paranoia gauge. I mean North Korea has even tried to assure the transparency of their space programme to the international community NASA and even the Japanese exploration Agency have both declined the offer that could well, settle the dispute. And what’s more Japan has even announced the extension of unilateral sanctions on North Korea for another year!

This satellite follows 2009’s launch of Kwangmyongsong-2, which fell into the Pacific Ocean in April of that year. And just like the present day brain fade, the US, Japan and South Korea had

labeled that launch as an opportunity to test technology, which would eventually transform into a potential intercontinental ballistic missile.

That move was followed by a UN Security Council’s statement that condemned the launch, which in turn led to Pyongyang withdrawing from the Six Party Talks. ever since North Korea announced its readiness for “total war” in February the level of apprehension in Seoul and Tokyo has skyrocketed, and every Pyongyang manoeuvre is being monitored under scrutiny glasses. And what Obama basically is doing is that he’s capitalising on the instability of the Korean Peninsula to strengthen his own reelection campaign.

The fact that Pyongyang wants international experts to monitor the launch of Kwangmysong-3 satellite connotes that

North Korea wants to showcase its peaceful intentions – and this step must be acknowledged even by the most paranoid of Pyongyang’s adversaries. The US however, needs to marginalise North Korea to

contain the expansion of Chinese influence in the region and hence, is simply refusing to showcase its grey cells of logic.

Nevertheless, it is pretty obvious that Obama is making a mockery of US foreign policy, and one would feel the US citizens are smart enough to see through it before

the elections.

The writer is Sub-Editor, Pakistan Today. He can be reached at khulduneshahid@gmail.com

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Used cars running over exchequer g

Used cars import causes Rs10b loss to national kitty: PAAPAM by a massive amount of Rs27 billion. he said that giving the Customs Department discretion, to further reduce applicable duties by up to 60 per cent depreciation, has literally allowed imports of used cars free into Pakistan. With double digit interest rates, unprecedented exchange rate depreciation and unavailability of gas and electricity, the government must intervene to ensure that local engineering units do not shut down, he said. Now precious foreign exchange will have to be wasted on import of spare parts for these used vehicles, which will also cause a loss to the exchequer to the tune of $50 million only in one year, he estimated. Instead of giving attention to the core issue of curtailing inflationary trend engulfing resources and endangering national integrity, the government is allowing import of each and every thing into Pakistan to jeopardize local industry, he said. “hundreds of components such as wheel rims, tyres, batteries, radiators, mufflers, wire harness, instrument panels, steering wheels, air conditioners, sun visors, other sheet metal parts and plastic parts, which

are produced by local vendors, will now be imported,” he said. he said that the vendors were directly providing jobs to almost 200,000 skilled workers (plus over 2 million indirect work force),who feared losing jobs if imports of used vehicles are continued in high numbers.

Munir K. Bana, Vice Chairman of PAAPAM, added that the situation was getting out of control as allowing large variants of models coming into Pakistan would surely also entail huge expenditure of foreign exchange on spare parts imports. he said that the worst part is that every vehicle imported is also a lost opportunity for our economy to create employment. We are estimating a loss of over 30,000 jobs that could have been created, he pointed out.

On rising prices of locally assembled cars, Mr. Bana said that the best way of reducing car prices is to increase level of localization. he emphasized to the government to implement Auto Industry Development Program (AIDP) in letter and spirit to achieve the benefits of cost reduction.

And now the lube base oil prices…

PiBC upbeat over president’s visit to india

LAHORE

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STAFF REPORT

he government has suffered a loss of over Rs10 billion in the past six months in the shape of loss of Custom Duty by allowing import of used cars under special regime as over 35,000 vehicles have been shipped into Pakistan during last 12 months. Besides, the automotive parts vending industry has lost an estimated Rs25-27 billion in sales, as expected jump in sale of locally assembled new cars was hindered by the arrival of used cars. This was observed by the Chairman of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) and Business Forum of Punjab in a meeting held here on Friday to discuss the repercussions of unbridled dumping of used cars in the country. he said the local production of cars and LCV’s have registered a massive reduction of 22000-25000 owing to import of used cars in huge volumes, also hurting the domestic auto parts vending industry

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Manufacturers object as lube base oil prices surge by Rs 7 per litre KARACHI STAFF REPORT

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TTOCK Oil Refinery has increased the prices of lube base oil

by Rs 7 per litre, which the lubricant manufacturers apprehend, would result in a sharp increase in all the lubricating oils. In a statement issued here, All Pakistan Lubricants Manufacturers Association (APLMA) Chairman Mian Zahid husain condemned what he said “arbitrary” act of the Refinery warning the hike could result in increasing the price of every brand of lubricating oil by Rs 11 per litre.

Zahid said the Attock Refinery, the major shareholder of lube base oil manufacturing National Refinery, has so far increased the price by Rs 37 per litre during the last 12 months and the latest increase was the fourth one. “The lubricating oil manufacturers are constantly being ignored by the lube base oil

manufacturer and it is raising prices without any consultation with the stakeholders on vague pretexts,” he alleged and asked for the government’s intervention to get the refinery’s decision reversed. he said no government functionary is taking notice of the arbitrary increases in the lube oil prices to the woes of lubricants manufacturers and the motor vehicles owners who have been forced to buy expensive motor oils.

The APLMA chairman said the refinery was increasing prices frequently on various pretexts. “If this trend continued the lubricant manufacturers would be forced to shut down their business,” he warned. Where, on one hand, the refinery was constantly increasing the prices of lube base oil, the smuggled and spurious oil was flourishing in the market on the other hand, said Zahid. he further pointed out that the lube oil prices had reached to the highest level in last two years.

tax evaders, Dr Hafeez has had enough of you!

ISLAMABAD ONLINE

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eDeRAL Minister for Finance Dr. Abdul hafeez Sheikh said that the culture of tax evasion is a serious issue in Pakistan and the government is taking concrete steps to control this menace. he expressed these views while addressing a National enforcement Dialogue on tax evasion in Pakistan here.

The Minister said that tax evasion is causing revenue shortfall in the country and thus hampering national development and public welfare projects and dependence on foreign loans is increasing due to this undesirable practice. The Finance Minister also highlighted that weak regulatory mechanism is one of the reasons for tax evasion as it encourages tax evaders resulting in ever

APP

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he Pak-India Business Council (PIBC) has welcomed the forthcoming visit of President Asif Ali Zardari to India, which will help improve bilateral relations, specially trade ties.

“The President’s visit will prove to be a milestone in developing friendly relations between the two countries, besides enhancing trade and commerce ties,” Chairman Pak-India Business Council Noor Muhammad Kasuri told APP after chairing a meeting of the Council here.

The administrative and economic committee of Pak-India Business Council deliberated at length the trade policies of Pakistan and its efforts to promote trade relations with India and appreciated the government policy in this regard. The meeting observed that the trade policy of the present government was in accordance with the aspirations of the people and the business community.

increasing number of people and organizations starting getting involved in tax evasion. he also said that tax evasion is rampant in the cigarette industry and the government has decided to take practical steps to curb this practice and FBR’s mobile teams would become completely operational all over the country from 1st may and special audit of suspicious units would be carried out within next 60 days. Joint teams of FBR’s Customs Intelligence and IRS would specially supervise the clearance procedure, he added. Speaking on the occasion, Chairman FBR Mumtaz haider Rizvi rejected the impression of non-existence of effective tax mechanism in the country. he said that the issue of tax evasion in the cigarette industry is of very serious nature and is caused by non-compliance to the legal framework. he said that FBR has established a dedicated cell in Peshawar which is doing all efforts to check production and distribution of illegal cigarettes as well as entry of smuggled cigarettes into the country which is evident from recent successful raids in KPK and Sindh. The chairman FBR said that introduction of special audit system to check suspicious tax evasion has helped a lot in countering tax evasion. Prominent economist Dr. Ashfaque hassan, Member Inland revenue Shahid hussain Asad, DG Customs Intelligence Muhammad Riaz, Member of Parliament’s Finance Committee Kashmala Tariq and President of Supreme Court Bar Association Yaseen Azad also addressed the National Dialogue.

KePZ offers incentives to woo investors KARACHI ONLINE

ISLAMABAD

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delegation of Bin Qasim Association of Trade & Industry, BQATI delegation led by Mian Muhammed Ahmed, Patron In-Chief & Founder President, Mr. Usman Ahmed, President, met Muhammed Tariq hasan, Chairman KePZ during their visit to Karachi export Processing Zone, Landhi. hassan gave detail presentation on performance of KePZ and infrastructure available at KePZ. he informed that new industries are coming in KePZ due to available infrastructure, Zone holds great potential for attracting foreign and local investment due to facilities provided by the zone and its unique location being adjacent to the port having most modern shipping facilities, we provide best available infrastructure, road network, peace, security and other utility services through one window operation and industrial land at a very cheap rates to industrialists—and in return—expect them to invest more in zone, create employment, give a boost to export and bring foreign exchange.

On the occasion Mr. Usman Ahmed,

President BQATI expressed that Zone had shown growth in a period of time and expressed hope that industries in the area would invest more in future, there is also need for improving infrastructure and provision of utility services through one window operation in other industrial zones.

Main Muhammad Ahmed, Patron-InChief / Founder President, BQATI said that industrialist are reluctant to setup their business in Bin Qasim Industrial Zone due to energy shortage, unavailability of infrastructure and law and order situation, however BQATI is trying to serve as the bridge between trade and industry and government functionaries. he pointed out that they had faced deteriorating law and order situation in the area last year; however, the situation has improved with increased police patrolling on the National highway. Security cameras also being installed at key locations; liaison with Pakistan Rangers has been maintained for setting up check post at PQA. Mr. Abdul Rasheed Jan Mohammed, Vice President BQATI, Mr. Shakil Ashfaq, Chairman Law Committee, along with Managing Committee of Bin Qasim Association of Trade & Industry and others also spoke on the occasion.

ICIEC provides $3b in AJK mulls over survival Export Credit Insurance of industrial structure KHARTOUM

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ONLINE

he Board of Governors of the Islamic Corporation for the Insurance of Investment and export Credit (ICIeC), member of Islamic Development Bank (IDB) Group, approved in its 19th Annual Meeting, in Khartoum, Sudan, the Annual Report and the Financial Results for 1432h (2011).

The Annual Report shows that the insurance business provided by ICIeC to member countries’ investors and exporters stood at over US$ 3.2 billion, an increase of 59% compared to 1431h (2010),while its financial results were positive despite the increase in credit and political risks results from the continuing global financial and economic difficulties. Commenting on these results the CeO of ICIeC, Dr. Abdel-Rahman eltayeb Taha, said this is “ we proud that the Corporation has managed to increase its volume of business with exceptionally low claims ration and to maintain its strong financial position under such difficult circumstances. ICIeC’s strength has been underscored by the

confirmation of the Aa3 rating assigned to the Corporation for the fourth consecutive year by Moody’s Investors Service”.

Dr. Taha added that they are “This growth in business was as a result of the increased awareness among exporters and banks in our member countries of the importance of credit and political risk insurance as an affective risk mitigant, especially during these turbulent times.

It is also a consequence of the responsiveness of ICIeC to the demand of its clients by introducing more flexibility in its product offering, and offering new products such as the “non-honoring of Sovereign Obligations” and “Contract Frustration Policies.

ICIeC, the Aa3 rated multilateral credit and country risks insurer is a member of the Islamic Development Bank (IDB) Group. It was established in August 1994G as a specialized international institution with full juridical personality with a mandate to encourage the exports of member countries and help attract foreign direct investment to them, through providing Sharia compliant credit and political risk insurance products.

MIRPUR

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APP

O ensure the survival of industrial structure in AJK and establish a new industrial zone here, the state government is considering to devise a plan to allocate the required funds in the upcoming budget.

Official sources told APP on Saturday that the new industrial zone was proposed to be established on an area of 25,000 kanal of land at Mirpur-Jatlan road, for which, the required land was being acquired by the government.

The sources continued that the government was giving due attention to gear up business activities in the state where a conducive atmosphere was already available for this purpose.

The government had also planned to provide due facilities to the existing and intending entrepreneurs at par with other parts of the country to ensure speedy uplift of the industrial sector.

The plan involve a network of wide roads, interrupted supply of power, water and natural gas as well as telephone facilities in new and existing industrial estates, the sources added.

The sources further said the government was also intending to give relief to those industrialists who had to face huge overhead freight charges of transportation of raw material from various parts of the country to their industrial units operating in AJK. The sources revealed that the government was also seriously contemplating the proposal of expanding tax holidays period for the new industrial units to be established in the state.

The amendments in existing five-year tax exemption law for the new comers in the AJK Industrial estates would be required to be made by the AJK Legislative Assembly, they added.

The sources indicated that the government had, meanwhile, taken strong notice of the reported increased trend of misuse of the existing five-year tax holidays by certain vested interest industrial concerns operating in the Industrial estates of Mirpur and Bhimbher districts.

It is pertinent to mention that several industrialists have already closed down their industrial units after enjoying the tax holidays on one pretext or the other or through renaming their already-based industrial units with the ulterior motives to enjoy the tax holidays for another five-year period.